Monday, June 11, 2007

Insurance fraud crackdown unlikely

Democrat & Chronicle: Local News: "In an effort to clamp down on automobile-insurance fraud, the state Senate is expected to pass a bill this week to increase penalties for people who help to stage fake accidents.

But that's as far as the effort may go. The Senate has passed similar bills for the past few years as auto-insurance fraud has grown into a billion-dollar problem for insurance companies and their policyholders, and New York has retained its position as one of the most expensive states for insuring cars and trucks.

There is no indication that the measure will gain traction in the Democrat-led Assembly, where it has never been allowed onto the floor for a vote.

'Some people in the Assembly think it comes down too hard on the little guy, that it's too harsh,' acknowledged Assemblyman Ivan Lafayette, D-Queens, one of the sponsors."

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